The chemical industry increased its gas consumption by 39% to 1.64 billion m3 in the three quarters of 2019
In January-September 2019, Ukrainian chemical enterprises consumed 1.64 billion m 3 of gas, which is 458 million m 3 or 38.7% more than in the same period in 2018.
Particularly high amount of gas consumption in Ukrainian chemical industry have been observed in the last two months. In August and September 2019, chemical companies consumed a record 257.7 and 242.5 million m 3 respectively. In general, in August-September 2019, the enterprises of the industry consumed twice as much gas as during the period August-September 2018.
The increase of gas consumption by chemical enterprises over the last two months is connected with the resumption of the work of the largest chemical industry enterprise - Odessa Port Plant from August 1, 2019. During the two months of operation, the company consumed 102.3 million m 3 of natural gas, which is one fifth of the total gas consumption by chemical enterprises in August-September 2019.
We should admit, that the activities of the Odessa Port Plant was stoped at the end of April 2018. According to ExPro, after the shutdown of Odessa Port Plant, gas consumption by the chemical industry in Ukraine dropped sharply to 56 million m 3 in May 2018 and 28 million m 3 in June 2018, which is 3 and 6 times respectively less than in April 2018.
Another important factor in the increasing of gas consumption was the further reduction of natural gas prices in Ukraine. According to Expro, the average weighted gas sales prices in August-September 2019 amounted to 5,100-5,500 UAH / thousand m 3, which is about half the price of gas in the corresponding period of 2018.
Expro Reference: In 2018, the chemical industry consumed almost 1.5 billion m 3 of gas, which is 13% less than in 2017 (1.7 billion m 3). Overall, in January-September 2019 the Ukrainian industry consumed about 8 billion m 3 of gas, which is 100 million m 3 less than in the same period of 2018.
The chemical industry is the second sector of Ukraine (after metallurgy) in amount of natural gas consumption. The largest chemical industry company is Ostchem Holding, which is part of the financial and industrial group Group D F of Dmitro Firtash. In addition, the large enterprises in the industry are DniproAzot, which is owned by Igor Kolomoisky and the state-owned Odessa Port Plant.
Odessa Port Plant is one of the largest enterprises of the chemical industry of Ukraine, which specializes in the production of ammonia, urea, liquid nitrogen, carbon dioxide, liquid oxygen, sodium sulfate. Odessa Port Plant is also engaged in overloading of chemical products coming from the CIS countries for export (is a monopolist in the Ukrainian market of services for receiving, cooling and overloading of ammonia.